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Gaza’s economy is about to collapse


GAZA – The crisis between the Palestinian political parties and Israel’s control of exports and imports through the crossings has paralyzed Gaza’s economic sector and raised prices.

Gaza Strip has been under siege for 11 years. Israel controls all exports and imports to and from the Strip. The political differences between Hamas and Fateh movements have worsened, and the two sides have sought to lead the Strip. This has complicated matters. In the beginning of 2018, the cost of the bill paid for by the citizen in Gaza.FLSTIN-REWSA-EQTSADI (1)

Today, a comprehensive strike is taking place against all the commercial and economic institutions in Gaza Strip, in protest of the economic collapse that has hit the Strip as a result of the political dispute, which threatens the collapse of the macroeconomic system.

In addition to the popular rejection of the availability of many inputs, the industrial and commercial associations and companies operating in Gaza Strip explained the difficult situation in the Strip, which resulted on raising of taxes and customs on goods during the government ruling of Gaza, today, the national accord controls the crossings, as the quantities of goods entered into the Strip have been reduced, making the markets scarce in many commodities.

The economic indicators have reached an unprecedented level of decline, especially the unemployment rate among graduates and the unemployed, poverty and lack of food, and the high number of traders imprisoned due to the inability to pay their debts.FLSTIN-REWSA-EQTSADI (3)

Trade and industrial associations pointed out that all domestic and international indicators revolve around the private sector to the point of zero and its proximity to the inevitable collapse, which will complicate the scene in the Strip than it was in previous years.

According to recent statistics, unemployment rose to 46%, unemployment reached a quarter of a million people, poverty rose to more than 65%, household food insecurity in Gaza Strip increased to 50%, unemployment among graduates rose to 67% .

And the lack of purchasing capability in all economic stripes led to a shortage of cash in the Strip to reach the lowest level in decades.

The Central Bureau of Statistics said in a report on the cost of living index in Palestine in January last, the main reason for the decrease in prices in Palestine for the reduction of prices of tubers by 4.62%, fresh meat prices by 2.53%, flour prices by 2.07%, and fresh vegetables prices by 1.07% , while prices of fresh vegetables increased by 10.6%, prices of fresh poultry by 8.06%, prices of dried vegetables by 7.57%, prices of vegetable oils by 2.57%, gas prices by 2.09%, fresh fruit prices by 1.50%.